CGC confident of hitting guarantee target
> Slow start due to SMEs cautious in making financial commitments despite economic growth
KUALA LUMPUR: Credit Guarantee Corp Malaysia Bhd (CGC), which has launched the CGC SME Apprentice Scheme (CGC SAS) to develop human capital for SMEs, is confident of reaching its target of approving 9,500 guarantees and financing valued at RM4.7 billion this year.
As of June 30, 2017, CGC approved 3,100 guarantees valued at RM1.5 billion, or about 33% of its target.
CGC president and CEO Datuk Mohd Zamree Mohd Ishak said it is slightly below its target as SMEs are cautious in making further financial commitments despite economic growth.
“But we’re confident that we’re able to meet our targets by year-end because of several major infrastructure projects such as the Pan Borneo Highway, East Coast Rail Link and High Speed Rail. We believe there is room for small contractors to be involved. Looking at the day-to-day requirements of SMEs, we’re fairly confident we’re able to achieve our targets for 2017,” he told a press conference after launching the CGC SAS yesterday.
CGC has availed over 444,700 guarantees and financing to SMEs valued at over RM63.7 billion since its establishment in 1972.
It will be spending over RM500,000 to undertake the CGC SAS, which provides on-the-job training skills to unemployed technical and vocational education and training (TVET) graduates, besides encouraging them to explore entrepreneurship.
Under this scheme, CGC assists unemployed TVET graduates in securing a one-year working engagement at selected SMEs. This will also be part of CGC’s corporate responsibility activity.
CGC will pay 90% of the cost, which include monthly salaries, employment benefits and statutory contributions, while the remaining 10% will borne by the participating SMEs.
Zamree said the scheme is targeting 15 apprentices but has so far selected 10 out of 800 applications to work with 10 SMEs that are in agro-based manufacturing, civil/ electrical contractor, construction, green technology, human resource agency, IT solutions, laundry services and the oil & gas industry.
The apprentice scheme kicked off in May 2017 and will end in May 2018.
Zamree said the scheme will add value to its SME customers and in some ways, bring about more awareness of CGC.
CGC chairman Datuk Agil Natt said CGC aspires to continue contributing to the nation building agenda. He said by providing this training opportunity for TVET graduates, more aspiring students will undertake studies at TVET colleges and eventually become entrepreneurs by starting their own SMEs.